Make Sure You're Insured When Renting Car

Dear Action Line: We're flying to Reno soon and plan on renting a car to drive around there. Some people say to buy the rental car insurance while others say not to, as we already pay for car insurance. You do the math -- please. -- L.T., Broken Arrow.

The Insurance Information Institute Web site says you should make some calls before getting on the plane: one to your insurance agent and one to the company that issued the credit card you'll be using to pay for the rental car.

Insurance agent: Ask how much coverage you have on your own car and what your deductible is. In most cases, whatever coverage and deductibles you have on your own car would apply when you rent a car, provided you are using the car for recreation and not for business. If you've dropped comprehensive or collision on your own car to cut your premium, you'll not be covered if your rental car is stolen or damaged in an accident -- or backed into while parked at Circus Circus. If you have comprehensive but also have a high deductible, you must pay that before the policy kicks in. Ask if your policy pays loss of use or towing charges or administrative fees. Some provide riders covering these, but not standard policies. Riders make it cheaper than coverage through the rental company, although many states' consumer protection laws don't permit "loss of use" charges on rental cars.

Credit card company: Call the toll-free number on the back of the card, or on all the cards you have, to see which offers the best coverage. Insurance benefits offered by credit card companies differ by company and by bank the card is from, as well as by the level of credit card used. A platinum card may offer more insurance coverage than a gold card, etc. Credit cards usually cover only damage to or loss of the rented vehicle, not other cars, personal belongings or the property of others. They usually offer no personal liability coverage for bodily injury or death claims. Some credit card companies provide coverage for towing, but many provide no diminished value or administrative fees. Some have changed their policies, due to the economic crisis, so you might not have as much coverage as you once did. Ask the company or bank to send you its coverage information in writing. Usually, credit card benefits are secondary to either your personal insurance protection or the insurance offered by the rental car company.

Loss damage waiver: This is not "insurance" but having one for up to $19 a day "waives" your financial responsibility when your rental car is damaged or stolen. They also provide coverage for "loss of use," the rental company charging you for lost income as its car sits idle being repaired. They can also cover towing and administrative fees but become void for accidents caused by you speeding, driving on unpaved roads or driving drunk -- often the case in Reno. If you have comprehensive and collision on your vehicle, ask your insurer if you are duplicating coverage buying the rental car's insurance.

Personal accident insurance: This offers coverage for you and your passengers for medical and ambulance bills on injuries caused in car crashes.

If you have adequate health insurance or are covered by personal injury protection under your own car insurance, you may not need this additional insurance. It costs up to $5 a day. But again, check the deductible amount on your own policy.

Submit Action Line questions by calling 699-8888 or by e-mailing phil.mulkins@TulsaWorld.com or by mailing it to Tulsa World Action Line, PO Box 1770, Tulsa OK 74102-1770.

Originally published by PHIL MULKINS World Action Line Editor.

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